Amid rising concerns about AI disrupting enterprise software, Nvidia CEO Jensen Huang has countered fears that AI agents will wipe out SaaS companies. In an interview with a news channel on Wednesday, February 25, Huang said investors have misunderstood the situation. “I think the markets got it wrong. I think it’s very likely that these companies that we’re talking about are going to introduce agents that run on their platforms,” he said, adding that software firms will deploy AI agents to build software and improve efficiency rather than become obsolete.
Huang explained that existing enterprise tools serve a clear purpose and will remain essential. “All of these tools that we use today, whether it’s Cadence, Synopsis, Service Now, or SAP, these tools exist for a fundamentally good reason and these agentic AIs will be intelligent software that uses these tools on our behalf and help us be more productive,” he said. Addressing talk of a “SaaSpocalypse,” he pointed to recent volatility triggered by Anthropic’s new workplace automation suite, which led to Indian IT stocks such as TCS, Infosys, Wipro and HCL Technologies falling 4–7%, while the Nifty IT index dropped nearly 6%, its sharpest single-day fall since COVID-19. The S&P 500 software and services index has declined nearly 23% as of Wednesday’s close amid the broader selloff.
Calling the launch of Claude Cowork an inflection point in AI, Huang maintained that agents will work with existing platforms rather than replace them. “Why rewrite the browser when the browser exists? Why rewrite Excel when Excel exists, just use it,” he said. “Nobody’s going to service better than ServiceNow and they’re going to come up with agents that are really fine-tuned and optimised for the work that uses the tools that they have […] In the end, we need the tools to finish their work and put the information back in a way that we can understand,” he added. On whether AI agents could replace human developers, Huang responded, “They are going to help us […] We’re going to need lots and lots of software engineers but they won’t have to code like they used to code. They’ll code in a new way and work at a different level of abstraction.” He noted, “I have 42,000 biological employees and I’m going to have hundreds of thousands of digital employees and together we’re going to use a lot more tools.”
His remarks came hours after Nvidia reported 73% revenue growth for the January quarter of fiscal 2026. For the full fiscal year, the company posted $216 billion in revenue and $120 billion in net profit, reflecting a margin of 55.6%. Shares rose 2% in extended trading following the earnings announcement, according to the news channel.
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